Reapply for Hamp

My mortgage co Saxon offerred me the Hamp program to save my home. When they sent me new loan documents my trial payments was more than the original and I was afraid to accept because they said those was just trial payments and the final monthly payments could be more or less no way to know other than accepting these trial payments. Can I apply again?

Mortgage Loan Modification Answer:

The whole idea with applying for a loan modification is to get your mortgage payments reduced, not increased.

If your payments were not affordable prior to applying for a loan modification, it does not make sense that your bank would make your payments even more affordable. Having said that, I know that this has happened to many people.

It is up to you accept or deny the bank's loan modification offer. There is no guarantee that the permanent modification they offer you would be any better - and that's if they offer you one.

Yes, you may re-apply, but most banks will not allow it until you have made 12 continuous and "on time" payments on your first (or prior) loan modification, as agreed. So make sure you ask your bank when you are allowed to re-apply if it turns out you cannot afford the modified payments.

Comments for Reapply for Hamp

The question is if the higher payment is 31% -38% of your gross income. Also is the increase in payment due to catch up in escrow? Look at the break down as to how much is payment on the note, how much is taxes and how much is insurance. Compare that to your previous payment break down.

Most likely you will find the increase is due to a catch up in escrow. If it is increasing the mortgage payment, then I would argue the point before accepting it as a trial payment. Once a trial payment is made that is supposed to be the amount of the permanent modification.